Future Social Security beneficiaries turning 60 this year are in for a rude surprise: their monthly benefits may be lower than those born in previous years. Benefits for each age group are calculated based on the Average Wage Index (AWI) for the year they turn 60. Normally, average wages rise from year to year. But this year, because of the coronavirus pandemic, wages are likely to decrease by as much as 20%. Benefits for wage-earners in 2020 would then be as much as 15% lower than for workers hitting that milestone birthday in 2019. This incipient reduction is sometimes referred to as a "notch" in benefits for people born in 1960.

The notch for workers turning 60 this year is due to a glitch in Social Security law. Social Security benefits are based on the highest 30 years in a worker's earning history. The Average Wage Index is applied to each year's earnings in order to ensure that benefits are based on the dollar value of today's wages vs. the year the wages were earned (which, for someone just turning 60, could date as far back as the late 1970s). The AWI was introduced into the formula by the Social Security Amendments of 1977. The drafters of that legislation clearly did not anticipate that average wages would fall precipitously from one year to the next.

Unfortunately, if no remedial action is taken, the benefit reduction for workers turning 60 in 2020 will be permanent. Their benefits will be lower than workers' born before 1960 for life. Of course, newly retiring workers' annual Cost-of-Living Adjustments (COLAs) would also be permanently reduced, causing further financial hardship. With 40% of seniors relying on Social Security for all or most of their income — and many just skirting the edges of poverty on already modest benefits — a steep falloff in the AWI could cause retirees real financial distress.

In order to avoid unintentionally punishing people who turn 60 this year, Congress must take action before those workers begin claiming Social Security. (Sixty-two is the youngest age a worker can collect retirement benefits; 67 is the Full Retirement Age for this age group.) Any change in Social Security law requires a 60-vote majority in the Senate.

The National Committee enthusiastically supports U.S. Representative Jan Schakowsky's (IL-09) bill, the "Quality Care for Nursing Home Residents and Workers During COVID-19 Act of 2020" (H.R. 6698).

Among other things, H.R. 6698 would require nursing home facilities to:

• have a full-time infection interventionist on staff;


• regularly test residents and staff;


• provide enough personal protective equipment (PPE) for all employees and report PPE shortages at least 24 hours before a shortage is expected to occur;


• offer at least two weeks of paid sick leave to each employee; and


• facilitate virtual visits for residents who cannot receive visitors during lockdown.

This bill also authorizes $100 million to states for strike teams who can assist with resident or worker safety within 72 hours of a coronavirus case being reported.

The plight of seniors does not always receive the news coverage or legislative priority it deserves. Yet, older people are suffering disproportionately — not only because they are more vulnerable to the virus — but because of the federal government's flagrant failure to quickly provide the testing and data necessary to slow the infection rate in nursing homes. That's why U.S. Representative Schakowsky's bill is so important! It offers a health and social lifeline to millions of seniors confined in nursing homes, isolated from friends and family, falling ill and in some cases dying — or living in constant fear of both.

Last week the Trump Administration urged the Supreme Court to strike down the Affordable Care Act (ACA), in yet another step to demolish the health care law passed under the Obama Administration on which millions of Americans depend, arguing that the ACA is invalid because the last Congress repealed the individual mandate. This comes at a time when many Americans have lost their jobs and employer-provided health care benefits as a result of the coronavirus pandemic, and they may now have to sign up for the ACA to gain coverage.

And so, we want to know your response to the following question:

At a time when millions of Americans are losing their jobs and their health care coverage because of the ongoing coronavius pandemic, should the Trump Administration drop its attack on the Affordable Care Act (ACA) — or continue full steam ahead?

Take our poll now!

Did you know that a team of experts in the field of Social Security policy is available to answer your questions about benefits? For 37 years, the National Committee has been helping thousands of our members and supporters with a broad range of concerns on Social Security.

Whether you're currently retired or approaching retirement, the National Committee's "Ask Us" section can help answer your questions about Social Security. You can either search our archives for valuable advice on a broad range of concerns at www.ncpssm.org/ask-us-recent/ or email your question to [email protected].

This week's question is: Our Social Security checks are deposited the 3^rd of the month. Are they for the month of deposit, or the previous month?

Click here to read the answer.

Q&A on the Basics of Social Security During the Pandemic (June 18, 2020, WMKV, interview with NCPSSM Senior Policy Analyst Webster Phillips)

Surprising Support in Congress for a Very Bad Bill (June 19, 2020, KTNF, audio clip with NCPSSM President & CEO Max Richtman)

Donald Trump's Big Problem with Senior Voters (June 27, 2020, The New Yorker, John Cassidy)

Trump administration asks Supreme Court to overturn Obamacare (June 25, 2020, Politico, Susannah Luthi)

A Pandemic Problem for Older Workers: Will They Have to Retire Sooner? (June 26, 2020, The New York Times, Mark Miller)